INTRODUCTION Much has been said in the media about the use of community trusts as part of Broad-Based Black Economic Empowerment (“B-BBEE”) ownership schemes not complying with the law and therefore constituting fronting practices. This was largely as a result of comments made by the Commissioner of the Broad-Based Black Economic Empowerment Commission (“B-BBEE Commission”), [...]
Must a Shareholder be actively involved in the management of the business and affairs of a Private Company?
Many private companies in South Africa, especially in the SME market, are traditionally owned and managed by the same individuals. With the increase in black ownership transactions as part of B-BBEE compliance initiatives by businesses, the share ownership structures of many of these private companies have now changed, raising the issue of shareholder participation in [...]